Rumours of Nokia Bid for Alcatel-Lucent Reappear

The on off rumours that Nokia might launch a takeover bid for Alcatel Lucent are on again with comments by an IDC analyst that such a bid could be considered.

Nokia\'s new CEO, Rajeev Suri has already suggested that the company -- which
is now mostly made up of its former NSN subsidiary -- might make some small acquisitions
to fill gaps.

However, Nabila Popal, research manager at IDC MEA has suggested that Nokia
could use the cash from its Microsoft deal to launch a full bid for Alcatel-Lucent.

Alcatel-Lucent is currently in the midst of a major round of job cuts to
restore its profitability. Having just carried out a similar exercise at NSN,
Rajeev Suri is thought to be wary of absorbing another company that needs the
same treatment.

"Although the job cuts may postpone the takeover in the near future,
Nokia would wait to see whether Alcatel-Lucent\'s financial performance improves
as a result," Popal explained to ITP.

Rumours that NSN might make a bid for Alactel-Lucent first emerged last year,
but were apparently not supposed by board talks between the two companies.

The two companies have some overlaps, but are largely complimentary in
technology terms. Alcatel-Lucent is also generally thought to be stronger at
winning contracts in the increasingly important Chinese market.

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